All Forum Posts by: Alex Keim

This was basically covered by other responses but just to put some numbers on it my QI told me that if the improvements were less than $75k then it made more sense to just take a little bit of the cash as boot and pay the taxes on that small amount of cash. Over $75k it made sense to do the reverse improvement exchange that Dave mentioned. The extra cost from my QI was $7,000 for the reverse improvement exchange. 

One thing not on your list. If you do the scenario you are talking about it could be difficult to 1031 exchange in the future. The replacement property title will need to be in the same LLC name but a lot of lenders will not lend to an LLC. So you will have to find a lender that will work with an LLC.

I’m looking in Kings Beach on the California side of the border

I am considering purchasing an STR in North Lake Tahoe. I know it's not a great CoC area but it would be something we would use as well so that's the upside. I am curious if anyone has recent current experience in the market that can provide some insight. There's a pretty wide gap between what a local PM told me vs what I got from STR Insights, AirDNA and my own estimations. I tend to believe the PM more than STR Insights and AirDNA but would love to hear from some folks with first hand experience. The area I'm considering is not in an HOA (so no pool, tennis, private beach access) and is about 1.5-2.0 miles from the lake, 4 bedrooms. What is the occupancy rate you really get? Is 60% a realistic number or is it much closer to 40%?

Thank you